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TMI Blog2019 (7) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules for Greater Mumbai, 1991 and the said developmental right were generated by the plot itself and there is no cost of acquisition and therefore not liable for any capital gain tax. In the present case , the facts are similar to the facts in the case as discussed hereinabove wherein the Hon ble Bombay High Court has held that no capital gain tax is attracted in the case of sale of FSI/TDR, we therefore, respectfully following the same uphold the order of Ld. CIT(A) by dismissing the appeal of the Revenue. - ITA No.4838/M/2017 - - - Dated:- 25-6-2019 - SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER For The Assessee : Shri Satish Modi, A.R. For The Revenue : Shri D. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g that the assessee has allowed the builder to load the FSI/TDR on the plot and thereby has not made any sale of land and building. The Ld. CIT(A) has held that the assessee has permitted the builder to exploit the FSI/TDR and construct the new building for which the assessee has invested ₹ 2.5 crore. The Ld. CIT(A) further held that as the TDR rights have arisen only due to amendment of DC Regulations 1991 and therefore there is no cost of acquisition and no capital gain would be attracted. The Ld. CIT(A) also held that since there is no sale of land and building and therefore the provisions of section 50C of the Act were also wrongly invoked by the AO. The ld CIT(A) deleted the addition made by the AO on account of capital gain resu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elopment right which was generated by the property and was transferred under a document in favour of the purchaser would not result in the gains being assessed to capital gains. The Tribunal concluded that what the assessee sold was transferable development right received as additional floor space index as per the 1991 Rules. It was not a case of sale of development rights already embedded in the land acquired and owned by the assessee. The Tribunal found that the assessee had not incurred any cost of acquisition in respect of the right which emanated from the 1991 Rules making the assessee eligible for additional floor space index. The land and the building earlier in the possession of the assessee continued to remain with it. Even after t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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